Generally speaking, everyone has some leadership capabilities in the business world. However, it is not enough to get people behind you; your employees also need to believe in the company's mission before they can be productive members of your workforce. This is especially important for founders and CEOs that set the tone of a company from the top down.
One of the most important things for any leader is having a clear vision. Without this, no one will know exactly what they should aim for in an organization. However, this is not enough for true company leadership. The company leader must also know how to motivate and encourage their staff to embrace the vision as well. This can be done in various ways, but all effective leadership styles have one thing in common: they are focused on the success of the business over everything else. Company leaders always have to do what's best for business over their own emotions or biases.
Business mentors and leadership styles are often discussed in articles, but rarely are they mentioned together. The five styles that follow are some of the most effective leadership styles for various work situations and teams:
5 Top Business Leadership Styles
1. Commanding Leadership Style
One of the most common leadership styles, commanding leadership, is characterized by obedience and discipline. The leader sets strict rules for their staff to follow, which are reinforced through punishment or discipline if they are broken.
However, this style of management should only be used when the company culture has already been established. Otherwise, employees will not respect the rules set out by the commanding leadership.
2. Coaching Leadership Style
The coaching leadership style is built around empowerment. The leader gives support to their employees, giving them the help they need in order to succeed.
A coach will be an emotional support for their employees instead of simply being a manager who oversees the work being done. It takes a lot of charisma to be a coaching business leader, so it might not be suited for introverted bosses.
3. Democratic Leadership Style
The democratic leadership style is about democracy and equality. The leader still has the final say, but also requires the opinions of their employees to be considered as well. With this leadership style, an employee’s opinion is just as important as that of the leader. This will allow the company to function more efficiently and reach a goal faster than would be expected.
This leadership style demands a great deal of respect and admiration from all employees. They must show their appreciation to the leader and create a mutual relationship where the leader can trust their employees and employees can feel safe trusting their leader.
4. Laissez-Faire Leadership Style
This leadership style is one that may only be used in the most opportune of times but can prove effective when implemented correctly. This style of leadership requires little or no management while also allowing subordinates to make their own decisions and take the initiative with their job while still having a presence of authority and respect behind them.
The downside of this style is now you must rely on your subordinates’ intuition and/or respect for you to make the right decisions. It can be challenging for business leaders that have had success micro-managing employees in the past and staying in control with a hands-on role.
5. Participatory Leadership Style
This business leadership style is one that involves encouraging the leader’s subordinates to have a say in how their job should be completed. This can help workers become more dedicated to the work they are doing because they are given a sense of purpose, understanding, and control.
It can also help with morale and overall productivity. Participation is facilitated by the leader assigning daily tasks to the workers, which will benefit the overall project and then holding a meeting in order to discuss ideas for improvement. The downside of this company leadership style is that it cannot be effectively utilized in business settings where tight deadlines must be met. There are too many workers with different levels of expertise, or there is a lack of trust between the leader and the employees.
Boss Bonus Tip
It is important to note that no single leadership style works for all situations and all people. For this reason, while these 5 business leadership styles are effective in some circumstances, they may not be the best option for others.
It is always better to find a mixture of management styles to use rather than focusing on one and ignoring the features of the other four.
Company Conclusion
It is important to note the difference between leadership styles in a business setting. To be successful in business and life, leaders might need to implement all five of these effective management styles.
